CM $4221$

In$-$Class Exercise

The Tiger construction company is working on an industrial project where the schedule is essential. The original contract amount for this project was $\backslash (\backslash$$ $76,859,750\backslash )$ and the estimated cost to complete was $\backslash (\backslash$$ $72,358,920\backslash ).$ At the final stretch of the project, the company is yet to install, align, and test one of the most critical component, extremely important for operation of the plant upon completion, and the project is behind schedule. The company had allocated a total of $1200$ whr for the installations, a total of $700$ whr for alignment, and a total of $900$ whr for testing. The installation crew consists of $2$ rigging crewmembers, $6$ laborers, and $1$ supervisor. The alignment crew consists of $1$ millwright fitter and $4$ laborers. The testing crew consists of $2$ testing engineers and $4$ laborers. The labor rates are as follows:

Laboreres: $\backslash$$$35/$hour

Supervisor: $\backslash$$$55/$hour

Rigging crewmembers: $\backslash$$$55/$hour

Millwright fitter: $\backslash$$$120/$hour

Testing engineers: $\backslash$$$120/$hour

Now, the customer has asked you to give them an estimate of how much additional funding you'd need in order to complete the task in time. The productivity trend for the installation crew is given as $\backslash ($ y$=-7\mathrm{.}28$ x$^\{2\}+4\mathrm{.}2$ x$+0\mathrm{.}52\backslash ),$ for the alignment crew is given as $\backslash ($ y$=-5\mathrm{.}28$ x$^\{2\}+2\mathrm{.}1$ x$+0\mathrm{.}81\backslash ),$ for the testing crew is given as $\backslash ($ y$=-3\mathrm{.}69$ x$^\{2\}+2\mathrm{.}25$ x$+0\mathrm{.}7\backslash ).$

Your customer is asking if you can use overtime to get the project back on schedule, and they are willing to reimburse you for the additional labor cost, minus a $\backslash (5\backslash \%\backslash )$ penalty for missing the schedule. Overtime labor rate is $2$ times the normal labor rate. These three jobs are contingent to each other, meaning the alignment cannot start until the installation is completed, and the testing cannot start until the alignment is completed. Also, there is $\backslash (25\backslash \%\backslash )$ chance that the alignment might not be correct the first time, which would cost you an additional $\backslash (\backslash$$ $185,000\backslash )$ to get it done using a secondary crew you have access to from another site nearby. Please prepare a report showing:

a$)$ Initial labor cost for all three tasks

b$)$ Revised labor cost for all three tasks

c$)$ Time savings by using overtime

d$)$ Total sum you can ask your customer, including the risk of using the second crew for alignment

e$)$ Total sum you can get paid

f$)$ Total sum that you can add to or deduct from your gross profit